Reuters
Copenhagen

Danish Prime Minister Helle Thorning-Schmidt has promised a spending package worth the equivalent of $5.7bn and declared the economic crisis over, fuelling speculation she is about to call a national election.
The government also increased its 2015 growth forecast.
The bullish announcements came just six months year after Denmark had to halve its 2014 growth outlook as its export-driven economy faltered on stagnation elsewhere in Europe.
“Today we can say very clearly that Denmark is out of the crisis,” Thorning-Schmidt told reporters, citing lower unemployment, consistent economic growth in recent quarters and consumer confidence at the highest level in years.
“We are through the most difficult years and Denmark is now again on a secure path,” she added.
She announced 39bn Danish crowns in extra spending up until 2020 for healthcare, the elderly, children’s day care, the environment and police, but shrugged off questions on the election.
“The election comes when it comes. But this is a plan that goes into the next election term, and that is our message: we have a plan for the coming years,” she said.
On Friday, sources close to the premier told Reuters that Thorning-Schmidt would probably announce an election this week.
The economy ministry raised its growth forecasts in a report issued unexpectedly two days early, adding weight to rumours of an election.
The premier decides the timing of the election although one must be carried out by September 14.
Polls show that the coalition of parties behind Thorning-Schmidt are 7-8 percentage points behind the bloc of opposition parties.
But outside the coalition the ratings of her Social Democrats have been rising in recent months and the latest weighted average of 11 polls show her party ahead of the main opposition Liberal Party for the first time in a long while.
The government in recent weeks announced other spending programmes including for kindergartens, while it sharpened its language on immigration, proposing to cut benefits for immigrants who find no work after a month.
Adding to the positive economic news issued yesterday was a report by veteran economic advisers, which applauded the government’s policies and predicted growth of 1.9% this year and 2.3% next year.
The government’s own report lifted the 2015 growth forecast also to 1.9% from a previously-held 1.4% and to 2.0% next year.
The economy grew 1.1% in 2014.
“The main driver is growth in our export markets as all EU-countries besides Cyprus expect growth,” Economy Minister Morten Ostergaard said at his second news conference that day.
He said a weaker euro, lower oil prices, low interest rates and better competitiveness have all helped the economy.



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